Part of a 3-year study of the Chapter 1 Neglected or Delinquent (Chapter 1 N or D) Program providing compensatory education services to youths in state-operated juvenile and adult correctional facilities, this report presents case studies of nine facilities that have developed particularly effective programs. The study used teacher questionnaires, an administrator survey, and structured interviews with program administrators to collect data. Findings indicate that effective programs emphasized the following: (1) the importance of education among facility activities; (2) strong administrative leadership; (3) adequate funding and careful planning of expenditures; (4) staffing and professional development; (5) regular and Chapter 1 N or D coordination; (6) appropriate student assessment; (7) appropriate curriculum and instructional methods; and (8) relevant support and transitional services. Effective programs also had comprehensive libraries containing a variety of materials that reflected the interests of a culturally diverse population; interlibrary loan programs; support services in the form of speakers, tutors, and vocational trainers; and services facilitating the enrollment of students into community schools on release. Included are four exhibits and three appendices containing a list of effective practices, case study narratives, and a case study guide. (67 references) (JB)